Question: Please answer 13 and 14, and explain every step. 13. CoffeeCarts has a cost of equity of 15%, has an effective cost of debt of
Please answer 13 and 14, and explain every step.

13. CoffeeCarts has a cost of equity of 15%, has an effective cost of debt of 4%, and is financed 70% with equity and 30% with debt. What is this firm's WACC? 14. AllCity, Inc., is financed 40% with debt, 10% with preferred stock, and 50% with com- mon stock. Its pretax cost of debt is 6%, its preferred stock pays an annual dividend of $2.50 and is priced at $30. It has an equity beta of 1.1. Assume the risk-free rate is 2%, the market risk premium is 7% and AllCity's tax rate is 35%. What is its after-tax WACC
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